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%%30,3,63%% %%B-%%
PFROI User Manual - Copyright (C) 1985-1991, Techserve, Inc.
┌─────────────IMPORTANT! Read This Before Printing!─────────────────┐
│ This user manual contains "Box" characters such as surround this │
│ text. It also, out of necessity (for examples) contains some lines│
│ which are 80 characters long. Your printer must be in an "IBM" │
│ mode to print "box" characters, otherwise it will substitute other│
│ characters in lieu of the "box" characters. If the utility "READ │
│ and RUN" (RNR.EXE) is found on this disk use it to view and print │
│ this manual. Prior to printing, READ & RUN will query whether │
│ whether your printer supports "Box" characters; if not, responding│
│ with "No" will replace the box characters with spaces during │
│ printing. Second, be sure that your printer can handle 80 char- │
│ acter wide output, even after you have set a left margin. If you │
│ set a left margin with setup codes, be sure to also set elite or │
│ compressed print so as to provide enough columns. If you are not │
│ certain about your settings, print this page as a test. The line │
│ below should not "wrap around" upon printing. Lastly, this manual │
│ may have some pages up to 65 lines long. Your printer thus should │
│ be set to 66 lines/page and have top or bottom margins cleared. │
└───────────────────────────────────────────────────────────────────┘
────────────────────────────────────────────────────────────────────────────────
2
Author's Notes
--------------
The product described here is the result of almost five years of
development and refinement. It is my hope that PFROI and its companion
products will enable you to take better control of your financial affairs.
On a broader front, it is also hoped that PFROI will promote the diffusion
of economic power and thereby bring the benefits of the free-market system
to all. To date, user comments and suggestions have played a significant
role toward improving PFROI and thereby furthering this end. I invite you
to participate in this process and thank you in advance.
Robert N. Hobbs
Pres., Techserve, Inc.
Bellevue, WA 11/89
Version 3.7 of PFROI shareware incorporates most of the features of PFROI
4.0 including price quote downloading capabilities. We have, however,
excluded some of the less used reports and utility functions and have
abbreviated this manual so as to permit us to fit everything on a single
360K disk after compression/archiving. Nonetheless, we think you will find
that PFROI V3.7 to be more powerful than any other portfolio manager
priced under $1000 excepting CAPTOOL, CAPTOOL Global Investor, and the
latest registered versions of PFROI. If you have been laboring with one of
those "other" portfolio managers, you may be able to convert your data
using PFROI's data import functions. See the text file "IMPORT.TXT" for
more details on this process. Lastly, if you like PFROI V3.7 please pass
on copies to friends, upload copies to BBS's, and of course please
register! Thanks for your support!
R. N. Hobbs 9/91
Pres., Techserve, Inc.
P.O. Box 70056
Bellevue, WA 98007 USA
1-800-826-8082
3
PFROI User Manual - Copyright (C) 1985-1991, Techserve, Inc.
TABLE OF CONTENTS
Chapter 1 - Introduction 7
PFROI Overview 7
Distribution & Registration 8
CAPTOOL 9
Caution! 9
Hardware Requirements 10
Upgrading From Prior Versions 10
Chapter 2 - Getting Started 11
Installation 11
Data Backups 11
Starting PFROI 11
PFROI Menu and Command System 12
...Files 13
...Help 13
...Path 14
Chapter 3 - PFROI Operations 15
PFROI Data Structure 15
...Portfolio Files 15
...Client Group Files 16
...Master (Security) List 16
...Price History File 16
...Distributions File 17
...DataLink File 17
...Configuration Files 17
Exploring PFROI 17
...Loading Portfolio Data 17
Transaction Records 18
Transaction Edit Functions 19
Transaction Data Entry 20
Transaction Commands 21
Valuation Records 24
...Valuation Commands 24
Position Records 26
Position Edits 27
...Position Non-Edit Fields 28
...Alternative Position Displays 29
...Position Commands 31
Valuation Graphics 32
Allocation Graphics 33
Performance Computations 34
4
Reports 38
...Report Output 38
...Report Setups 38
...Report Contents 39
...Report Customization 41
Client Group 43
Auxiliary Records 44
...Portfolio Configure 44
...Tax Rate Records 47
...Limit Prices 49
...Master (Security) List 50
...Group Types 51
...Distribution Records 52
...Price History 53
PFROI Configurations 55
Utilities 56
Chapter 4: PFROI - New Portfolio 57
Defining the Portfolio 57
Deposit/Withdrawal Rules 57
Starting the Portfolio 59
Omitting Portfolio History 59
Tax Rates 60
Chapter 5: PFROI - Transactions 61
Date Field (Mo/Dy/Yr) 61
Transaction Code (TAC) 61
...Deposit/Withdrawals 62
...Receive/Deliver 62
Buy/Sell 63
...Reinvestments 65
...Interest Payments 66
...Dividend Payments 68
...Capital Gains Distributions 70
...Return of Capital 71
...Splits and Share Dividends 72
...Bond Discounts and Premiums 74
...Partnerships/Direct Investments 76
...Other Transactions 77
Security Symbol 79
Tax Lot Number 79
...FIFO Cost Basis 80
...Average Cost Basis 80
...Lot-Specific Cost Basis 81
...LIFO Cost Basis 81
Description Field 82
Quantity 82
Amount 82
Sign Assignment 83
Estimated Tax 83
Commission and Transaction Fees 83
5
Chapter 6: PFROI - Valuations 85
Valuation Frequency 85
"Create" vs "Review" 85
Cash and Position Reconciliation 86
Chapter 7: Special Situations 87
Individual Retirement Arrangements (IRA's) 87
Mutual Funds 88
Stock Options (Puts & Calls) 89
Employee Stock Options 91
Gifts/Inheritance 91
Wash and Short Sale Tax Rules 92
Exchanges of Securities (Mergers/Divestitures) 93
Money Market Funds 94
Certificates of Deposit 94
Zero Coupon Bonds 95
Premium Amortization 97
Split Shares Received After Sale 97
Depreciable Assets/Real Estate 97
Margin Accounting 98
GNMA's/Mortgage Loans 99
Safe Deposit Box Shares 100
Reverse Splits 100
Same-Day Trades 100
Dividends/Interest/Splits Same Day as Sale 100
Commodities 100
Corporate Dividend Reinvestment 101
Employer Contribution Retirement (401K) Plans 101
Chapter 8: Understanding ROI 103
Return On Investment 103
ROI Annualization 104
Short Sale ROI's 104
Time-Weighted ROI's 104
Beta Statistic Calculation 104
Chapter 9: Datalink Communications 107
DataLink Overview 107
DataLink Access 107
DataLink Record 107
Log-On Specifications 109
Retrieval Specification Records 112
Position Record Quote Retrieval 118
Price History Quote Retrieval 119
Communication Configuration Specifications 120
6
Appendix A: Configurations 123
...Color Setups 123
...Printer Specifications 124
...Communication Parameters 126
...Work File Path 126
...System MegaHertz 126
...System Sound 126
...Monographic HiVideo 126
...Block Cursor 127
...Date Feed 127
...File Backup 127
...Base Currency 127
...Decimal Type 127
...Amount Decimals 127
...Date Format 127
...Saving Configurations 128
Appendix B: PFROI Trouble-Shooting 129
7
1 Introduction
────────────────────────────────────────────────────────────
PFROI (regis. tm) Overview
────────────────────────────────────────────────────────────
The PFROI portfolio manager is the result of an effort to
measure portfolio performance in order to effectively set and
meet long range investment goals. The classical performance
measure for investments in industry is "return on "investment"
or "ROI". Determining ROI for a portfolio of investments,
however, is non-trivial. Complicating factors include fluc-
tuating dividend and interest payments, non-uniform security
growth rates, as well as the periodic addition and withdrawal
of portfolio funds. Taxes further complicate the issue.
It is thus no surprise that many portfolio management software
products either do not address ROI or do not compute it
correctly. PFROI, however, computes both portfolio and
individual security annualized ROI before and after taxes
using the internal rate of return method. This is the "true"
ROI, effectively weighting for both timing and amount of cash
flows. This is the ROI that the individual investor must
focus upon to achieve wealth and income goals.
In addition to computing ROI, PFROI performs many other
portfolio management functions. One of the most important of
these is keeping track of investment cost bases for tax
reporting purposes. Without PFROI, this can be a particularly
difficult task, particularly with dividend or interest
reinvestment and multiple purchases and sales. PFROI solves
this problem, providing four different tax lot methodologies,
saving the user time and money at tax time.
PFROI supports virtually all security types and transactions,
including stocks, bonds, options, CD's, mutual funds, as well
as depreciable assets such as real estate and partnership
interests. PFROI additionally permits you to track investment
commissions and fees and computes estimated taxes used to
determine after-tax return on investment. PFROI V3.7 provides
over fourteen reports including graphics and user-customizable
reports.
Although security pricing may be entered manually, PFROI
includes a communication module which may be used to download
current or historical security prices from "Dow Jones News
Retrieval Service", "Compuserve Information Service" and other
data services into your portfolio or into a master historical
price list. PFROI may also import prices from PRODIGY Quote
Track text files and from quote-comma delimited text files.
8
PFROI employs a straight-forward data entry format, uses
menu-driven commands, provides numerous help screens, and
supports output to screen, printer, and text files.
Distribution and Registration
────────────────────────────────────────────────────────────
Full function, shareware designated versions of PFROI may be
distributed on electronic bulletin boards, by shareware
distributors, computer clubs and others. This permits you
"try before buying" so you do not get stuck with expensive
software you can't use. It also keeps our marketing costs
low, permitting us to offer licensed versions of PFROI and
CAPTOOL at a reasonable price.
PFROI however is NOT "free" or "public domain" software. To
enable the benefits offered by shareware, you are expected to
support products if you find them useful by making a "regis-
tration" or license fee payment to the developer. PFROI is no
different in this regard. A PFROI license may be obtained by
making payment as indicated by the registration form on
PFROI's opening screen.
In return for your registration you will receive a licensed
disk containing the latest version of PFROI free of open/close
"order forms" and including some features not contained in the
shareware. These include additional reports (including
unrealized/realized gains, past due income, relative strength,
ROI by security type and additional transaction & position
reports), an additional transaction input format (extends
price time share quantity), additional graphics (moving average
price history graphics), extended memory utilization, an
automatic tax lot assignment/optimization module, an active
distributions module, as well as other features such as
optional output to Lotus compatible ".WKS" files. The
registered disk comes with a 170+ page on-disk or printed,
indexed manual.
In the U.S. and Canada, you are permitted and in fact encour-
aged to pass unaltered "shareware" or "demo" designated copies
of PFROI on to others for evaluation. Any charges, however,
must be limited to cost of media, handling, and or BBS commun-
ications (Users: payment of such charges to shareware distri-
butors is NOT registration and does not support shareware
development ... you are still expected to register if you use
beyond trial stage). Techserve, Inc. reserves the right,
however, to revoke this permission non-retroactively from
specific parties or all persons in general. This shouldn't be
necessary however, if shareware is supported.
SPECIFIC PROHIBITION: Outside the U.S. and Canada, due to low
support for shareware and due to some laws or legal rulings
attempting to reduce the legal status of "shareware" to that
of "public domain" property, Techserve, Inc. withdraws any
blanket permission to copy and share "shareware"-designated
PFROI. Those who wish to distribute "shareware" PFROI from
9
such localities must declare in writing to Techserve, Inc.
that Techserve, Inc. "shareware" 1) will not be represented as
"public domain" or its legal equivalent, and 2) will be
represented as software obliging the user to pay the copyright
holder if utilized beyond trial use. Such distributor must
receive, in return for such declaration, a numbered master
disk along with written authorization from Techserve, Inc. to
distribute software contained on that disk. Renewal of such
authorization will be dependent upon the level of regis-
trations. Techserve, inc. may, at its discretion, also grant
approval to authorized distributors to take legal action
against non-authorized distributors within their localities.
CAPTOOL (regis. tm)
────────────────────────────────────────────────────────────
PFROI is also available as part of two higher end products
named "CAPTOOL" and "CAPTOOL Global Investor". CAPTOOL
incorporates the latest version of PFROI but also supports
batch processing of multiple portfolios, generates
customizable client statements, and computes ROI on multiple
portfolios. CAPTOOL includes stock and bond evaluation
modules, a "TIME-TREND" module which graphs financial ratios,
macro economic statistics and currency exchange rates, and a
client "Prospector" module for investment professionals.
The "CAPTOOL" "Global Investor (tm)" includes all of the PFROI
and CAPTOOL features plus supports multiple-currency port-
folios and permits translation of PFROI report headers and
labels into local languages. CAPTOOL-GI also incorporates a
pooled investment fund accounting module which simplifies
share accounting for pensions, multi-beneficiary trusts and
investment clubs. The fund accounting module generates six
reports including ROI report, "client" report and "NAV/Share"
graphics.
CAUTION!
───────────────────────────────────────────────────────────
Although we think PFROI may be useful for most investors, and
we do our best to minimize bugs, we cannot underwrite
everyone's investment decisions or business use of this
product. Before using this program you should recognize that
it involves a high level of complexity which is potentially
susceptible to error either in the program code itself or on
your part due to incorrect usage. Thus you should understand
that you use and rely upon the results of PFROI at your own
risk.
You should satisfy yourself regarding the adequacy and
accuracy of PFROI with test examples before committing to
using and relying upon the program on a regular basis. You
should furthermore review all program output for reason-
ableness before passing it on to your clients or using it to
make investment decisions.
10
Hardware Requirements
───────────────────────────────────────────────────────────
PFROI requires an IBM PC-compatible computer running PC-DOS or
MS-DOS 2.0 or higher and containing a least 384K-bytes of main
memory (assuming DOS 3.3, and no TSR programs in memory).
PFROI may be run on a system with as little as one 720K floppy
disk drive or two 360K floppy disk drives although operation
from a hard disk is preferred if one is available.
PFROI will run on systems with monochrome, Hercules, CGA, EGA
or VGA display adaptors and monitors. Some combinations of
color display adaptors and monochrome display may require
reconfiguration of the screen colors to get adequate contrast.
Screen graphics is disabled on systems with non-graphics
monochrome display adaptors.
A Hayes-compatible modem is required for communications and
price downloading. A modem, however, is not mandatory to use
PFROI since security pricing may be keyed-in manually.
PFROI supports most types of printers for text output.
Graphics output is supported on most Epson-compatible dot
matrix printers and Hewlett-Packard Laser-Jet II compatible
laser printers (see Printer Configurations).
Upgrading From Prior Versions
────────────────────────────────────────────────────────────
If you are upgrading to this version of PFROI (Ver. 3.7)
from PFROI versions V2.0 to V3.3, you must use the utility
program "PFCONVRT.EXE" to convert your portfolio data files
to the new formats used by PFROI V3.7 or later. Executing
PFCONVRT from the the DOS ">" prompt will provide instruc-
tions. Before you start, be sure you have backup copies of
your data files!
Portfolio files created using PFROI V1.15 or earlier must be
converted to PFROI V2.0-V3.3 format before converting to the
current format. This utility will be provided to users upon
special request at registration.
11
2 Getting Started
────────────────────────────────────────────────────────────
Installation
────────────────────────────────────────────────────────────
The PFROI Shareware program is distributed in self-decom-
pressing archive file named "PFROISW.EXE". This file may be
decompressed by 1) copying it to your hard disk, and 2)
executing it from the DOS ">" prompt: > PFROISW<Enter>.
Data Backups (Important!)
────────────────────────────────────────────────────────────
Before your initial run of PFROI it is important to say a word
about data backups. With any program, including PFROI, you
should "backup" copies of your data files to floppy disks or
to a backup tape after each work session. If possible, it is a
good idea to store at least one backup copy of data at a
separate location (e.g. safe deposit box) to protect against
loss due to fire or theft. The easiest way, however, to make
backups is to use DOS's "COPY" command if there are only
several data files, for example:
C>copy mypf a:/v<Enter>
This copies the portfolio file named "MYPF" to the floppy
disk in the "A" drive. The "/v" in the command tells DOS to
"verify", or double-check that bytes written to the "A"
drive are identical to the bytes read from the source file.
Starting PFROI
────────────────────────────────────────────────────────────
Assuming you have performed the installation described on the
preceding pages, to run PFROI, at the DOS ">" prompt type
"PFROI" and hit the "Enter" key:
C>PFROI<Enter> {hard disk installation}
or
A>PFROI<Enter> {floppy disk installation}
or
B>A:PFROI<Enter> {two 360K floppy disks, program
files on "A" drive, data on "B"}
12
PFROI's registration form will first appear (on shareware
only, Please register!). Hit "Esc" to proceed to the main
menu which will appear as follows:
╔═══════════════════════════ PFROI (R) 3.7 Shareware ════════════════════════╗
║ ║
║ ║
║ L) Load Portfolio G) Client Group ║
║ ║
║ T) Transactions A) Auxiliaries ║
║ ║
║ V) Valuations C) Configurations ║
║ ║
║ P) Performance U) Utilities ║
║ ║
║ R) Reports Q) Quit Pfroi ║
║ ║
║ ║
╠═════════════════════ Alt + File Help Path=C:\CURDIR\ ══════════════════════╣
║ ║
║ > ║
║ ║
╚══════ Copyright (C) 1985-1990, Techserve, inc. All rights reserved. ═════╝
If you have a black & white display and find the menu hard to
read, exit ("Q", then "Esc") the program and restart it as
follows at the DOS prompt: > pfroi mono<Enter>
PFROI Menu and Command System
────────────────────────────────────────────────────────────
Two menus appear on the opening PFROI screen. The top menu is
the "prime" menu. Selections from this menu are made simply
by keying the key corresponding to the letter in front of the
desired selection.
The second menu is an "Alt-Key" menu. In this menu the avail-
able selections are displayed on a single line in mnemonic
form. You execute the command by depressing the "Alt" key in
combination with the letter key corresponding to the selected
command.
PFROI additionally uses the "Esc", "Arrow", "Pgup", "PgDn",
"Ins", "Del", "Home", and "End" keys plus some "Ctrl"-Key
combinations to perform record editing and screen manuevering
functions.
This manual will proceed through the PFROI menus starting with
the "Alt" menu on the opening PFROI screen. Before you begin
entering your own data, we suggest you follow the manual
through the program, trying out the various features using the
default data files which will initially be automatically
loaded by PFROI.
13
Files
Keying the "Alt+F" key combination "pops-up" a "File
Functions" menu from which data files may be loaded, renamed
or saved, or a file directory viewed. The "File Functions"
sub-menu operates as follows:
L) "Load" portfolio. Prompts for a new portfolio file to
load. If the current file has been changed, but not saved,
you will be prompted for whether you want to save it first.
D) "Directory" display. Prompts for a directory and file
specification to search. The names of all files residing
in the directory specified and meeting the file specifi-
cation criteria are displayed. DOS "wildcard" characters "*"
and "?" may be used in the file specification. A portfolio
file may be loaded from the directory by manuevering the
highlight bar over the file name an hitting the "<Enter>
"key. Non-portfolio files will not load.
V) "saVe" portfolio. Saves currently loaded portfolio to
disk.
R) "Rename" file. Permits you to rename a file so that later
"saVe " operations send the data to the new filename.
Help
Executing "Alt+H" or keying the "F1" key from almost any
screen will open a window with help information similar to the
following:
┌──────────────────────────────────────────────────────────────────────────┐
│ The following commands function much the same throughout the program: │
│ │
│ Esc - Returns to the previous screen or aborts an operation │
│ Arws - "Arrow" keys on number keypad move the cursor │
│ PgUp - Pages upward (backward) a page of data at a time │
│ PgDn - Pages downward (forward) a page of data at a time │
│ ^PgUp - ("Ctrl" + "PgUp") Moves to start of data │
│ ^PgDn - Moves to end of data │
│ Ins - Inserts new record (Ctl+F6 duplicates record) │
│ Del - Deletes current record (Ctl+F10 bypasses prompt message) │
│ Home - Moves cursor to beginning of field, initiates field edit │
│ End - Moves cursor to end of field, initiates field edit │
│ ^Y - ("Ctrl"+"Y") Clears field │
│ ^G - ("Ctrl"+"G") Deletes next word in field │
│ Alt+F - File save, load and directory function sub-menu. │
│ Alt+H - Displays help screen (or "F1" key) │
│ Alt+P - Prints out data, "LPT1" is the default output device. If a │
│ filename is used, a disk text file is created. │
│ Output to "SCRN" enables output to be viewed on screen. │
│ │
│ Other "Alt" commands vary functions depending upon the active screen. │
└──Esc, PgUp, PgDn for more..──────────────────────────────────────────────┘
14
Often there is more than one page of help information avail-
able in a "Help " "Window". This is indicated by the notation
"PgDn" at the lower left border of the window as indicated in
the example above. Use the "PgDn" key to view the additional
help screens. Use the "Esc" key to exit the help screen.
Path
The "Path=" notation on the PFROI opening screen indicates the
path from the root directory to the currently active direc-
tory. Executing the "Alt+P "command enables you to move from
the current directory to another directory. This is useful to
allow loading and saving of data files in directories other
than the directory containing the PFROI program files.
An additional feature of the "Path" command is that it causes
PFROI to look for ".CFG" configure files in the new directory.
If ".CFG" files are found they are loaded, thus effectively
changing the configuration state of PFROI and its sub-modules.
This may be useful for users managing groups of portfolios
requiring differing date, decimal or base currency configura-
tions. In this case you can set up a separate sub-directory
for each group of portfolios and use the "Path" command to
switch between sub-directories while simultaneously loading
the configurations required for each group.
15
3 PFROI Operations
────────────────────────────────────────────────────────────
PFROI Data Structure
────────────────────────────────────────────────────────────
Before proceeding with using PFROI it is useful to understand
how PFROI data is organized. Eight types of data files are
employed. Each file type contains one or more types of
records. These file and record types are described here.
Portfolio Files
A portfolio file is the basic data file for PFROI. It contains
all the data pertaining to a single portfolio in the following
types of records:
Transactions - These records contain a chronological history
of all activity within a portfolio, e.g. "Buys", "Sells",
"Dividends", "Splits", "Deposits", "Withdrawals", "Reinvest-
ment", etc. These records are generally unique to each
portfolio and are entered on the "Transaction" record edit
screen.
Positions - These records contain a summary of the portfolio
"position" at a given point in time, e.g. the cash holdings,
number of shares held of each security, the cost basis,
valuation, etc. These records are generated by PFROI on the
date you specify, using the information contained in the
transaction records. Security prices are downloaded,
imported, or manually entered into the position records.
Valuations - These records contain position record totals in
summary form and are used for reference only.
Tax Rates - These records comprise a table of tax rates which
are used to compute "estimated taxes" on portfolio income.
Default tax rates used to initialize tax rate records in a
new portfolio are stored in an ASCII text file names
"TAXRATES.STD".
Target Prices - These records permit specification of "stop-
loss" or "target" prices for securities held within a
portfolio.
Local Configurations - These records contain configurations
unique to each portfolio file, providing some flexibility in
customizing the treatment of each portfolio.
There is no "standard" or default filename for portfolio
files. A demonstration portfolio file named "DEMOPF" is
16
provided on the distribution disk. It contains example records
for demonstration purposes. You specify the filename of each
portfolio when it is first created. Filenames may be changed
by exiting to DOS and using the DOS "Rename" command or by
using the PFROI "Rename" file function.
Client Group Files
Client Group files contain a listing of "Client Records" which
are grouped together for batch processing. Client Records
contain the name of each client's portfolio file and
optionally contains the client's name, address, account
number, tax identification number, telephone number and any
brief notes concerning the client. In addition to containing
client information,
The default filename used for client group records is
"CLIENTS.STD". Other filenames may be used, however, and
multiple group files may be created. (Note: Client Group
records were formerly called "Accounts Records", and had a
default filename of "ACCOUNTS.STD" but were renamed to avoid
confusion some users had between the concept of "accounts" and
"portfolios").
Master (Security) List
This file holds "Master Security Records" which contain
security information such as security type, beta value,
industry code, dividend or interest payment dates and amounts,
etc. This information is utilized by PFROI while it is
generating portfolio position records or creating reports. To
ensure that the "Master List" contains an entry for all
securities held in all portfolios, it may be updated from the
portfolio position records. You may later edit master list
records to add additional information regarding each security.
The default "Master List" filename is "MSTRLIST.STD".
In addition to "Security" records, the "Master List" file also
holds "Group Type" records. "Group Type" records correlates
user-defined descriptions of security groups with security
"Types", e.g. "S=Common Stocks", "M=Mutual Funds", etc.
Price History File
This file contains chronological records of security pricing
history. These prices may be imported into portfolio position
or batch position records for valuation purposes. The default
"Price History" filename is "PRICES.STD".
17
Distributions File
This file holds a chronological history of "per share"
interest, dividend, share splits, or capital gains distri-
butions for all securities. Portfolios may be configured such
that these records will be accessed and distributions will be
computed and inserted into the portfolio whenever a portfolio
position is generated. The default distribution filename is
"DISTRIBS.STD". Due to size constraints, this feature has
be excluded from PFROI shareware.
DataLink File
This file contains communication "scripts" used for
downloading price information directly into portfolio position
records or into price file records. Modifiable "scripts" are
available for a number of pricing data services. The default
"DataLink" filename is "DLINK.STD".
Configuration Files
Several files are used to store PFROI configuration
information. These files end in ".CFG" and are automatically
loaded upon PFROI startup or whenever the "Path" command is
executed to change the currently active subdirectory.
Exploring PFROI
───────────────────────────────────────────────────────────
The best way to become familiar with the mechanics of
operating PFROI is to go through all the menus and display
screens and try all the commands. This section leads you
through this process.
Loading Portfolio Data
The "Load Portfolio" selection on the main menu is used to
create a new portfolio file, or to load an existing portfolio
file. A maximum string of 30 characters is accepted as input
in the following format :
Portfolio file : d:\path\filename
The drive ("d:" = drive designation) and path may be omitted
if the file is in the current directory. (See your DOS manual
for use of paths). The filename may contain up to eight
characters plus a three character extension separated by "."
(e.g. "MYSTOCKS.XYZ").
For this exercise, select "Load Portfolio" and load the demo
portfolio file for practice edits (<Enter>=Enter key) :
Portfolio file : DEMOPF<Enter>
18
Notice that after the portfolio is loaded, its name now
appears at the top of the PFROI menu to indicate that this is
now the active portfolio file.
Another method of loading a portfolio is to use the "File"
command ("Alt+F") from the PFROI menu and select the "Direc-
tory" option on the "File" sub-menu. When a listing of the
files in the currently active subdirectory is displayed, use
the arrow keys to manuever the highlighted field over a port-
folio filename. Upon hitting the "<Enter>" key the file will
load and the display will return to the main menu. If the
highlighted file is not a portfolio file the file will fail
to load.
A third method of loading a portfolio file is to enter the
"Client Group "records and position the cursor upon the
portfolio to be loaded and then execute the "Get Portfolio"
command.
────────────────────────────────────────────────────────────
CAUTION!: Filenames with prefixes greater than eight
characters and/or with file extensions greater than three
characters will be truncated by DOS.
IMPORTANT!: While running PFROI, the default drive and
directory should generally be that containing the portfolio
data and client group files. If PFROI is on a separate disk
from this data (e.g. PFROI on drive C, data on drive A), you
should generallly switch the default drive/directory to the
data disk prior to starting PFROI. The program is then
executed by specifying its drive in the run command (e.g.
A>C:PFROI<Enter>).
───────────────────────────────────────────────────────────
Transaction Records
────────────────────────────────────────────────────────────
Select "Transactions" from the main menu to obtain the
transaction editing screen which appears as follows:
*ALL***** Transactions: DEMOPF #0 ($) siGn=On 258K
Esc Pg Ins Del Alt+ File Prn Sort Aux Mask Dspl Calc seeK Tot Imp Bal Help
Mo/Dy/Yr TAC Symbol -Lot Description Quantity $ Amount Est. Tax
== == == === ========= === ================ =========== ============ =========
12/31/89 SLL FFZCB - 1 Redeem 1st Fed. -100 10000.00 -0
12/31/89 IN+ BRKR* - Broker int. 67.89 19
12/31/89 TAX - C.G. Tax Adj. -1882
01/03/90 SLL DIA - 1 Diasonics @4 -1000 3930.00 96
01/11/90 BUY VWIGX - Vngrd World Int' 1449.2754 -15000.00
01/11/90 BYD VGDMMF$ - Vngrd MMF 15000 -15000.00
01/31/90 DRI VGDMMF$ - MMF reinv 210.97 210.97 59
01/31/90 IN+ BRKR* - Broker Int. 64.10 18
02/01/90 BUY XICO - 2 Xicor Corp @3 600 -1835.00
02/02/90 DV+ T - AT&T div 90.00 25
02/28/90 DRI VGDMMF$ - MMF reinv 232.31 232.31 65
02/28/90 IN+ BRKR* - Broker Int. 57.32 16
19
Transaction Edit Functions
Transaction records are representive of the type of record
display presented in PFROI. Available edit and command keys
are displayed on the second line of the screen. Executing
these commands requires the use of a single key, such as "Esc"
or "PgUp", or the use of a key combination such as holding
down the "Alt" or "Ctrl" key while striking another key. The
following commands function pretty much the same throughout
the program:
Esc - Returns to the previous screen
Arws - "Arrow" keys on the number keypad move the cursor
(blinking underline) in the direction indicated by
the arrow.
PgUp - "Pages" upward ("backward") a page of data at a time.
PgDn - "Pages" downward ("forward").
^PgUp - ("Ctrl" plus "PgUp" key) Moves to start of data.
^PgDn - ("Ctrl"+"PgDn" keys) Moves to end of data.
Ins - Inserts a new, empty record.
Del - Deletes current record. (Ctrl+F10 to suppress prompt)
Home - Moves cursor to beginning of a field, initiates
editing in field.
End - Moves cursor to end of field, initiates editing
within the field.
^Y - ("Ctrl"+"Y" keys) Erases a field.
^G - ("Ctrl"+"G") Erases next word.
Bksp - (Backspace key) Erases right to left
Transaction record data entry and editing may be accomplished
by moving the cursor with the cursor control keys (arrow keys)
and entering data. Use the "Home" or "End" keys to initiate
editing of a text field with existing data.
Now try editing transaction records as follows:
Cursor Movement - Move the cursor around using the "Arrow"
and "Page "keys on the number keypad as previously described.
If these do not appear to operate, toggle the "NumLock" key
on your keyboard. Try using "Ctrl+PgUp" to go to the top of
the screen and "Ctrl+PgDn" to go to the bottom of the screen.
Insert Record - Next, try inserting a record with the "Ins"
key. Note that the screen scrolls down to make room for the
new record. Using the "Ctrl+F5 " key duplicates a record.
Try this command. It is often useful when entering a series
of dividends which are identical except for the date.
Delete Record - To delete a record, hit the "Del" key.
Responding with "Y" to the "Are you sure?" message deletes
the record. Using the "Ctrl+F10" combination bypasses the
"Are you sure?" check. Try deleting the records just
inserted.
20
Transaction Data Entry
Now, insert a blank record and enter some data, moving the
cursor to start with the first field:
Mo/Dy/Yr - This field is really three fields. Key in a date.
End each entry with the "Enter" key or "Right Arrow" key. Use
a two digit entry for the year. Years 51 to 99 are assumed
to be 1951 to 1999, years 00 to 50 are assumed to be 2000 to
2050. (Note: this span can be altered by modifying the
"Century Base Date" on the configuration screen).
TAC (TransAction Code) - Before making an entry, note that
the most commonly used code values are displayed at the
bottom of the screen when the cursor moves into this field.
A fuller description is obtained by using the "Alt+H" (help)
command ("PgDn" for second help page) or by referring to
Chapter 5 of this manual. For this exercise enter "BUY" in
this field.
───────────────────────────────────────────────────────────
ATTENTION!: Be careful when editing TAC's of existing
records. Changing the TAC's may change the plus/ minus sign
requirements in the "Quantity" or "Amount" fields. To be
safe, delete and re-enter the entire record or at least re-
enter data in the "Quantity", "Amount" fields to ensure
proper signs.
───────────────────────────────────────────────────────────
Symbol - This field uniquely identifies an asset in your
portfolio. Typically, a security's trading or "ticker"
symbol is used. For this exercise enter "ABC". IMPORTANT!:
The same symbol may not be used for different securities. Use
of the Base Currency sign (e.g. "$") as a character within
the symbol is reserved for securities in which the quantity
and price are always equal, such as money market funds.
Lot (Tax Lot Number) - This field is used to match buy and
sell transactions for determining capital gains cost basis.
Enter a number (try "2"). Chapter 5 discusses lot number
usage.
Description - This field expands to about 30 characters width
on entry to provide space for a security name and/or a short
note for a more informative record. Some additional
information such as original purchase dates and cost bases
may also be specified in this field for some records. (see
Chapter 5 for detail). Strike the "Home" or "End" keys to
initiate editing of existing data in this field.
Quantity - This field holds the number of shares involved in
a transaction. Enter "100" as a test entry. Note that in this
case there is no decimal point. Some transactions however
involve fractional shares. This field can accom-modate a
fractional entry up to four decimal places. Move the cursor
21
back to the start of the field and make an entry with a
fractional portion (e.g. "25.4321") to see what happens.
Note: Hitting "Esc" while in the middle of a number entry
field restores the original value in the field. This feature
facilitates recovery from an inadvertent data entry.
Amount - This field contains the net "dollar" (or "yen",
"marks", or "pounds", etc.) "amount of "a transaction. Try
entering a value (e.g. 2515.75). Note that when you complete
the entry, PFROI adds a negative sign. PFROI uses the
transaction code to determine the sign on all "Quantity" and
"Amount" entries to avoid user error. In this case the sign
is negative because cash flows out of the portfolio when a
security is bought. Automatic sign assignment may be
disabled for some special circumstances by toggling the
"Alt+G" key combination to set the "siGn" setting to ""Off"".
Est. Tax - This field may be skipped, with the cursor moving
on to the first field of the next record if a transaction is
normally a non-income generating transaction. A tax amount
may be entered however if a transaction is income producing.
When this is done, an "m" appears in the right margin to
indicate a "manual" tax entry. Ordinarily, however, the user
leaves this field blank to be filled in later by PFROI when
the "autotax-Calc" command is executed ("Alt+C" with cursor
in "Est. Tax" field).
Cost/Unit - This non-input field is an alternative to the
"Est.Tax "field which is displayed when the "Alt+D" key
combination is toggled.
Com/Fees - This is a second alternative input field which may
be viewed and edited by toggling "Alt+D" a second time. This
field permits separate tracking of commissions and fees.
Not all transaction types require data in every field. PFROI
will skip over fields not requiring input. To see this, move
to the blank record at the end of the file and enter a
"Deposit Funds" (enter "DPF" in TAC field) transaction. Note
that the "Symbol", "Lot" and "Quantity" fields are skipped in
entering data. Note also that a new blank last record is
appended upon completion of data entry into the current last
record.
Transaction Commands
A number of useful commands are available on the transaction
edit screen as follows:
Alt+F - accesses File Functions sub-menu from which the
portfolio "Load", "saVe", "Rename" and directory
functions may be executed.
22
Alt+P - Prints transactions between specified dates. If
"LPT1" or "PRN" is used for the output device then
output is sent to the printer. If a filename is
specified, the output is sent to a text file on disk
of that name.
Alt+S - Sorts transactions chronologically. Transactions
must be in date order for PFROI reports, position
generation and ROI calculations to work properly.
Because of this, PFROI automatically sorts
transactions before saving a portfolio or before
exiting the transaction edit screen.
Alt+A - Auxiliary records. Displays menu for auxiliary
records.
Alt+M - "Masks" records. This is a complex, but very useful
command. It allows you to isolate records which
conform to the mask settings which are displayed
above their applicable field on the first line of the
screen. Any combination of three mask settings are
possible: "TAC", "Symbol", and "Lot".
The procedure is to first move the cursor to the
field containing the value to which you wish to set
the mask and then toggle "Alt+M" to set the mask.
Toggling "Alt+M" a second time while in the same
field clears the mask. Try this command using all
three maskable fields.
If you insert a new transaction record while
"Symbol", "TAC" or "Lot" masks are set, the new
record may be out of date order relative to other
""hidden"" transactions. In this situation, you must
sort the records before performing other functions.
Alt+D - Display toggle. Alternates display between three
formats in the right-most field: "Est. Tax",
"Cost/Unit" and "Com/Fees".
Alt+C - Calculate/Capture. This performs different functions
as follows depending upon the field in which the
cursor resides:
"Description Field" - Retrieves descriptions from the
"Auxiliary " "Description" field of the Master List
record of the same security.
"Amount Field" - Computes accrued or phantom interest
for discount bonds and premium amortization for bonds
purchased at a premium. The cursor must be in the
"Amount" field of the target record and the maturity
date must be indicated in the description field of
the original "BUY" or "RCV "transaction.
23
"Est. Tax Field" - Calculates estimated taxes using
rates from the tax rate records.
Alt+K - seeK transaction. Searches forward from the current
transaction, stopping at first occurance of the
specified symbol.
Alt+T - subTotal calculation. This is a complex, but useful
command allowing you to compute numerical field sub-
totals for groups of transactions. This command
involves a multi-step procedure as follows:
1) Optionally set the "Mask" command to isolate the
security and/or transaction type which you wish to
"sub-Total".
2) Move the cursor to the record from which you wish
the computation to begin. Toggle the "Alt+T" key
combination to mark the start record.
3) Move the cursor to the last record you wish to be
included in the computation. Toggle "Alt+T" a
second time. A record displaying the subtotals
will appear. These records may now be printed
using the print command.
4) Toggle "Alt+T" a third time to clear the computation.
Two variants to the "sub-Total" command may also be
used. The "Alt+#" (or "Alt+3") command sub-totals
only those transactions containing quantity entries.
It also internally reverses signs as neccessary so as
to compute the proper cost/unit. The second variant,
"Alt+$" (or "Alt+4") sub-totals "cash-only" transac-
tions so as to get the correct net cash flow for the
group transactions.
Alt+I - Imports transactions from a comma-delimited ASCII
text file of the following format:
Mo/Dy/Yr,TAC,Symbol,Lot,"Description",Quantity,Amount,Com/Fee,Tax
It is important that the description field be
enclosed in double quotes.
PFROI can also import data directly from text files.
This allows you to import data you've previously
entered in other portfolio management software. See
the text file "IMPORT.TXT" for details.
Alt+B - cash Balance. Displays portfolio cash balance at the
current transaction.
24
Valuation Records
────────────────────────────────────────────────────────────
You must go through the "Valuation" display to get to the port-
folio "Position " records. Return to the main PFROI menu (Esc) and
select "Valuations "to get the screen appearing as follows:
Portfolio Valuation : DEMOPF Base = 07/02/82 ($) Tax=Off 258K
Esc Pg Alt + File Prn Aux Create Review Delete Base Multi Grfx Imp Help
Mo/Dy/Yr $ Value Mo/Dy/Yr $ Value Mo/Dy/Yr $ Value Mo/Dy/Yr $ Value
== == == ========= == == == ========= == == == ========= == == == =========
07/03/82 1950 03/31/90 358538
12/31/83 25645.04/30/90 348970
12/31/84 75419*05/31/90 43913
12/31/85 130479
12/31/86 173687
12/31/87 216023
03/31/88 223621
06/30/88 246856
09/30/88 241177
12/31/88 238016
03/31/89 274838
06/30/89 295293
09/30/89 342062
12/31/89 334004
01/31/90 343052
02/28/90 348661
The valuation screen cannot itself be edited but indicates the
date and total value of underlying "Position" records. In the
above example display valuations occur yearly and then quarterly
for the most recent years. However you may wish to value your
portfolio monthly when you receive your broker or mutual fund
statements, or perhaps even more frequently by downloading market
price quotes.
Although only 64 valuation dates may be displayed on the valuation
screen at one time, many more valuations may be created and
stored. If you do have more than 64 valuations, the most recent of
these are displayed upon initial entry to the valuation display
screen. "Off-screen" records may be moved "On-screen" by using the
vertical arrow or "PgUp" and "PgDn" keys.
If a "*" is displayed next to a valuation date this means that a
price is missing on the underlying position screen. Use the
"Review" (Alt+R) command to access the position records to add the
price. If a "." is displayed, this means prior transactions have
been added or edited, thus requiring that the valuation be re-
generated using the Create or Multi-create commands.
Valuation Commands
Valuation records and their underlying Position records can be
created or deleted using the "Create" and "Delete" commands as
follows:
25
Alt+F - File functions. Load, save, and rename
portfolio files.
Alt+C - Create Valuation. The "Create" valuation command is
used to generate a new valuation record and its
underlying position records. On executing this
command you will be prompted for a valuation "Close
Date". This may be a new date or the date of an
existing valuation. You may key-in a new or existing
date or use the "+" or "-" keys to scroll dates of
existing valuations into the date input field.
Upon completing entry of the date, PFROI will
commence to calculate the portfolio position and cost
bases on that date. The position and cost base are
computed starting from either the position which
exists on the "Base Date" (see top of screen) or from
the date of the first transaction in the portfolio,
whichever comes later.
The time required to compute a new position can be as
little as several seconds or over a minute, depending
on the number of transactions to be processed, the
complexity of the tax lot assignments and the speed
of your computer.
Upon completion of computations you will be presented
with the "Position" record display for market price
entry. If the position date is that of a previously
existing valuation the prior "Price", "Type", "Beta",
and "Description" fields will be preserved. The new
(or updated) valuation will be displayed upon
completing entry of prices and exiting (Esc) from the
position records.
Try the "Create" valuation command with the DEMOPF
portfolio. Be sure to select a date no earlier than
the first transaction, or else you will get no
response.
Alt+D - Delete Valuation. The "Delete" command is used to
delete excess old valuations and the underlying
position records. Important!: Do "not" delete a
valuation just because you need to recompute the
portfolio position for the date using the "Create"
command. "Create" will automatically replace the old
position records while preserving any prices you may
have previously entered.
Other available valuation commands are as follows:
Alt+R - Review Position. This command enables you to review
and edit prices of position records underlying an
existing valuation without recomputing the position
and cost bases. Use this command in lieu of the
"Create" command only provided transactions prior to
26
the valuation date have not been edited since the
valuation was created.
Alt+B - Base Date. As previously indicated, when the "Create"
command is executed, the resulting new position is
computed from either the first transaction in the
portfolio or from the base date, if the base date is
later. Ordinarily the Base Date is set by default to
be one day prior to the date of the first portfolio
transaction, ensuring that all transactions are used
in computing a new position.
The "Alt+B" command may be used, however, to set a
base date to the date of a later existing valuation
in order to reduce the time required to calculate new
portfolio positions. Be careful (IMPORTANT!) however
in using the base date command ... the base date must
be set to a date prior to the date of any new
valuation to be created, and prior to the date of any
transactions edits which you wish to be reflected in
the current valuation.
Alt+M - Multi-Create - Recomputes positions for all valuations
starting with the specified valuation date. This is
useful to quickly update valuations after altering
prior transactions.
Alt+G - Valuation Graphics. This command displays valuation
graphics. Upon execution you will be prompted for a
start dates, which you may choose to be other than
the first valuations in your portfolio. Valuation
graphics are further covered later in this chapter.
Alt+T - Tax Status toggle. This command turns the "Tax
Status" parameter On/Off. When "Tax=On", transaction
record "Estimated Taxes" are automatically recomputed
whenever the "Create" position command is executed.
Alt+I - Import. Used to import data from other portfolio
software. See text file "IMPORT.TXT" for details.
Position Records
────────────────────────────────────────────────────────────
Use the "Alt+R" ("Review") command on the valuation screen to
view the security positions and prices underlying an existing
valuation in DEMOPF. When prompted for a date, select one of
the dates shown on the Valuation screen.
The position record screen has four possible display formats.
Whatever format was last displayed when a portfolio file was
27
saved is the format displayed upon reloading. The as-shipped
default position display format appears as follows:
03/31/90 Position: DEMOPF #0 257K
Esc Pg Alt+ Prn Tot Aux Dspl Qprc Sprc dLnk Mst Grph Cxr Xml Inc Hlp
T Symbol Descrip Position Mkt Price $ Value $ Cost Gains Val %
= ========= ========= ========== ========= =========== =========== ======= =====
**CASH*** 48278.91 48278.91 0 13%
M FMAGX Fidelity 428.6028 58.60 25116.12 21143.14 3973 7%
M USCRX USAA Corn 1039.5396 18.61 19345.83 13527.33 5819 5%
M!VGDMMF$ Vangrd Pr 26602.96 1.00 26602.96 26602.96 0 7%
M VWNFX Vangrd Wi 775.7952 14.30 11093.87 10000.00 1094 3%
M VWIGX Vangrd Wr 2415.4590 11.39 27512.08 25000.00 2512 8%
M Mutual Fu 109670.86 96273.43 13397 31%
S T AT&T 300 42.00 12600.00 8180.25 4420 4%
S CTUS Cetus Cor 500 16.00 8000.00 5125.00 2875 2%
S XON Exxon 700 46.13 32287.50 12110.70 20177 9%
S F Ford Moto 600 47.25 28350.00 9400.00 18950 8%
S HAL Halliburt 300 45.37 13612.50 8514.00 5099 4%
S INTC Intel Cor 375 41.75 15656.25 6071.25 9585 4%
S NIKE Nike "B" 600 67.75 40650.00 4772.25 35878 11%
S PAC Pacific T 300 46.50 13950.00 7915.85 6034 4%
S PKD Parker Dr 1000 10.13 10125.00 3975.00 6150 3%
S XICO Xicor, In 1000 3.00 3000.00 3795.00 -795 1%
S Common St 178231.25 69859.30 108372 50%
T!TNOTED93 TNote##11 100 108.70 10870.00 9948.00 922 3%
T!TNOTEA94 TNote##5/ 100 114.87 11487.00 9980.80 1506 3%
T U.S. Trea 22357.00 19928.80 2428 6%
Gr. Total 358538.02 234340.44 124198 100%
S SP 500 S&P 500 339.9400
S DJ 30 DJ 30 2707.2000
S COMP NASDAQ 435.5400
Position Edits
Four "Position" record fields may be edited (use horizontal arrows) :
Type ("T") - This field contains a single user-defined
character to identify the type of each security (e.g. "S" for
stocks, "B" for bonds, "M" for mutual funds). Upon creation
of a new position PFROI will retrieve the proper "Type" for a
security from the "Master List". If no entry for that
security is found, PFROI will use the "Type" found for that
security in the "Base Date "position records. You must
manually input a "Type" if none is found in the "Master List"
or in the "Base Date" position records. Upon executing the
"Total" command ("Alt+T"), securities of a common type are
grouped together and sub-totaled.
28
Description - This field contains a short description of the
security. This is retrieved from the security's Master List
record entry, provided such an entry exists, otherwise the
description is taken from the base date position record for
the security. If not found in either the Master List or the
base date position records, the description field is taken
from the description field of the security's first
transaction record. The description is truncated at any
occurance of the character "\" in the source description.
Price - This field contains market price for the date of the
position. Prices may be entered manually in decimal (e.g.
"11.625") or fractional format (e.g. "11 5/8"). Fractional
entries will automatically be converted to decimal format.
Market prices greater than 9999 default to 2 decimal places.
Prices greater than 999999 default to zero decimal places.
$ Value - This field is automatically computed on entry of
market price. A valuation entry may be made however in this
field causing the associated market price to be back-
calculated. This is useful to force a valuation to tie out
exactly to one shown on a broker or mutual fund statement.
An entry in this field may also be used to enter the value
of holdings in investments such as 401K type investment
plans where the total value of the holding is known, but
price per share is not quoted.
PFROI retains prices, descriptions, and types if an existing
position is re-generated using the "Create" valuation command.
This saves effort if a position must be regen-erated to
incorporate transactions edits.
Try editing the position records. Use the arrow keys to move
between fields. Use the "PgDn" or down arrow keys to move
down screen if records run off of the bottom of the screen.
Use "Ctl+PgUp" to return to the top "Position "record. The
"Total" command ("Alt+T") may be used re-generate totals and
percentages.
Position Non-Edit Fields
Non-edit fields on the position record screen are as
follows:
Position - This field contains the sum of the number of
shares or units for the each security. Fractional shares, if
they exist, are displayed up to four decimal places. "Short"
and "Long" positions are computed separately, hence in some
situations a security may occupy two records on the position
screen.
Cost - This field contains the taxable cost base for the
security. Purchases and reinvestments increase the cost base
while sales of shares reduce the cost base.
29
Gains - This field contains valuation minus the cost base.
Val % - This field contains the percentage of the entire
portfolio that the security comprises. To get correct
percentages, all prices must be entered and the "Total"
command "Alt+T" executed.
Alternative Position Displays
Alternative position displays are accessed by toggling the
"Alt+D" key combination. These have additional record fields
as follows:
#1 Gains %. Indicates percentage gain over cost base:
03/31/90 Position: DEMOPF #1 257K
Esc Pg Alt+ Prn Tot Aux Dspl Qprc Sprc dLnk Mst Grph Cxr Xml Inc Hlp
T Symbol Descrip Position Mkt Price $ Value $ Cost Gains Gain%
= ========= ========= ========== ========= =========== =========== ======= =====
**CASH*** 48278.91 48278.91 0 0%
M FMAGX Fidelity 428.6028 58.60 25116.12 21143.14 3973 19%
M USCRX USAA Corn 1039.5396 18.61 19345.83 13527.33 5819 43%
M!VGDMMF$ Vangrd Pr 26602.96 1.00 26602.96 26602.96 0 0%
M VWNFX Vangrd Wi 775.7952 14.30 11093.87 10000.00 1094 11%
M VWIGX Vangrd Wr 2415.4590 11.39 27512.08 25000.00 2512 10%
M Mutual Fu 109670.86 96273.43 13397 14%
S T AT&T 300 42.00 12600.00 8180.25 4420 54%
S CTUS Cetus Cor 500 16.00 8000.00 5125.00 2875 56%
S XON Exxon 700 46.13 32287.50 12110.70 20177 167%
S F Ford Moto 600 47.25 28350.00 9400.00 18950 202%
S HAL Halliburt 300 45.37 13612.50 8514.00 5099 60%
S INTC Intel Cor 375 41.75 15656.25 6071.25 9585 158%
S NIKE Nike "B" 600 67.75 40650.00 4772.25 35878 752%
S PAC Pacific T 300 46.50 13950.00 7915.85 6034 76%
S PKD Parker Dr 1000 10.13 10125.00 3975.00 6150 155%
S XICO Xicor, In 1000 3.00 3000.00 3795.00 -795 -21%
30
#2 Income & Yield. Indicates annual dividend or interest
income ($/Yr) and yield percent (Yld %) for the security.
Dividend and interest rates are retrieved from the master
list:
03/31/90 Position: DEMOPF #2 257K
Esc Pg Alt+ Prn Tot Aux Dspl Qprc Sprc dLnk Mst Grph Cxr Xml Inc Hlp
T Symbol Descrip Position Mkt Price $ Value $ Cost $/Yr Yld %
= ========= ========= ========== ========= =========== =========== ======= =====
**CASH*** 48278.91 48278.91 0 0%
M FMAGX Fidelity 428.6028 58.60 25116.12 21143.14 2169 9%
M USCRX USAA Corn 1039.5396 18.61 19345.83 13527.33 738 4%
M!VGDMMF$ Vangrd Pr 26602.96 1.00 26602.96 26602.96 0 0%
M VWNFX Vangrd Wi 775.7952 14.30 11093.87 10000.00 1047 9%
M VWIGX Vangrd Wr 2415.4590 11.39 27512.08 25000.00 1039 4%
M Mutual Fu 109670.86 96273.43 4993 5%
S T AT&T 300 42.00 12600.00 8180.25 360 3%
S CTUS Cetus Cor 500 16.00 8000.00 5125.00 0 0%
S XON Exxon 700 46.13 32287.50 12110.70 1680 5%
S F Ford Moto 600 47.25 28350.00 9400.00 1800 6%
S HAL Halliburt 300 45.37 13612.50 8514.00 300 2%
S INTC Intel Cor 375 41.75 15656.25 6071.25 0 0%
S NIKE Nike "B" 600 67.75 40650.00 4772.25 480 1%
S PAC Pacific T 300 46.50 13950.00 7915.85 564 4%
<ESC> to prev. screen
#3 Cost & Beta. Indicates per unit cost ("$/U") as computed
from taxable cost base. Also display's security's "Beta" as
entered in the Master Security List. This field may be edited.
03/31/90 Position: DEMOPF #3 257K
Esc Pg Alt+ Prn Tot Aux Dspl Qprc Sprc dLnk Mst Grph Cxr Xml Inc Hlp
T Symbol Descrip Position Mkt Price $ Value $ Cost $/U Beta
= ========= ========= ========== ========= =========== =========== ======= =====
**CASH*** 48278.91 48278.91 1.00 0.00
M FMAGX Fidelity 428.6028 58.60 25116.12 21143.14 49.33 1.00
M USCRX USAA Corn 1039.5396 18.61 19345.83 13527.33 13.01 0.00
M!VGDMMF$ Vangrd Pr 26602.96 1.00 26602.96 26602.96 1.00 0.00
M VWNFX Vangrd Wi 775.7952 14.30 11093.87 10000.00 12.89 1.10
M VWIGX Vangrd Wr 2415.4590 11.39 27512.08 25000.00 10.35 1.10
M Mutual Fu 109670.86 96273.43 19.28 0.62
S T AT&T 300 42.00 12600.00 8180.25 27.27 0.85
S CTUS Cetus Cor 500 16.00 8000.00 5125.00 10.25 1.45
S XON Exxon 700 46.13 32287.50 12110.70 17.30 0.00
S F Ford Moto 600 47.25 28350.00 9400.00 15.67 0.00
S HAL Halliburt 300 45.37 13612.50 8514.00 28.38 0.90
S INTC Intel Cor 375 41.75 15656.25 6071.25 16.19 1.45
S NIKE Nike "B" 600 67.75 40650.00 4772.25 7.95 0.95
S PAC Pacific T 300 46.50 13950.00 7915.85 26.39 0.90
31
#4 Accrued Interest. Displays interest accrued on bonds since
the last payment was received. Some users may need this
information for corporate accounting ledger entries and profit
and loss statements.
Position Commands
Commands available on the portfolio position screen are as
follows:
Alt+P - Print. Prints the current position record to the
specified output device. If the "Cols" setting in the
"Printer Specifications" for that device is equal to
or greater than 96 characters, additional fields will
be printed. If "Cols" is set equal to or greater than
112 or 120, then still more fields are printed.
Alt+T - Total. Causes position records to be grouped by
"Type", to be sorted by description field within
type, and to be sub-totaled and totaled in applicable
fields.
Alt+A - Auxiliary. Accesses auxiliary records menu, from
which the "Master List" records may be entered.
Alt+D - Display. Toggles between alternative position
displays. Whatever format was last displayed when a
portfolio file was saved is the format displayed upon
reloading.
Alt+R - Retrieve prices. Prices position records using
"Close" prices obtained from "Price History Records".
If price records with the same date as the position
records are not found, then prices are drawn from
price records with the next earlier date.
Alt+S - Send prices. Sends prices from position records to
price records, creating new price records. If price
records already exist for a security on the position
date then the price record is left unchanged.
Alt+C - Currency exchange rate. (Global version only).
Retrieves currency exchange rate from currency
exchange rate records and computes valuation. The
cursor must be in the exchange rate field.
Alt+I - Income forecast. Recomputes forecast annual income
(Position Display #2 only). A notation in the form
""@$1.25"" is required in the Master List auxiliary
description and/or the position record description to
specify "Per Share" annual income. When the cursor is
in the "Description" field, this field takes prece-
dence over the Master List auxiliary description in
specifying the annual income.
32
Alt+L - dataLink. Accesses DataLink communication module for
downloading prices into position records.
Alt+M - Mask sub-totals. Isolates sub-total records. This is
useful for providing an asset allocation overview in
portfolios with a large number of security holdings.
Alt+G - Graphics. Generates "pie" chart graphics showing
portfolio allocation. Position graphics are covered
further later in this chapter.
Alt+X - eXport. Updates the Master (Security) List by
creating new records for symbols contained in the
position records, but not found in the Master List.
When you have finished with your trial position edits and have
tried the above position commands use the "Esc" key to return
to the Valuation screen. Note that the valuation for the date
just edited has changed to reflect the prices entered.
Valuation Graphics
────────────────────────────────────────────────────────────
Graphics portraying portfolio and security valuation versus
investment may be generated using the "Alt+G" command from the
PFROI valuation screen. Upon executing the command, you will
be prompted for a "Start Date". This is the date from which
the plot will start. Use the date of any existing valuation.
The next prompt is for the symbol mask, with the mask
"*ALL*****" used as the default value. Retaining the "ALL"
mask (hit "enter" key) plots results for the entire portfolio.
Specifying the ticker symbol for a particular security in lieu
of "ALL" plots results for just that security.
Valuation display plots may be generated on systems with
either Hercules, or color/graphics displays.
On the resulting screen the line labeled "Val" represents the
total market value of the portfolio at the time indicated on
the horizontal axis. This portion of the plot is derived from
the portfolio valuations adjusted for mid-period deposit and
withdrawal transactions. If the plot were for an individual
security, the mid-period adjustments would be for "BUY" and
"SLL" transactions.
The line labeled "Inv" represents the total investment in the
portfolio over time. In the case of a plot of the entire
portfolio (Symbol="*ALL*****") "investments" are increased by
any deposits into the portfolio ("DPF", "BYD", or "RCV"
transactions) and are decreased by any withdrawals from the
portfolio ("WDF", "SLW" or "DLV" transactions). In the case
of the plot of an individual security "investments" are
increased by buy and re-investment transactions and are
decreased by sell transactions.
33
Toggling Alt+L replots the graph using a logarithmic scale.
Valuation plots may also be re-generated with "Tax=On" set by
executing the "Alt+T" command once the initial plot is
displayed. When the graphics are plotted with "Tax=On",
estimated taxes on transactions are added to investments. The
rationale for this is that taxes on portfolio income are in
fact an ""investment"" in the portfolio albeit that they earn
no return other than fulfillment of tax obligations.
Valuation plots may be printed once displayed by using the
"Alt+P" command. Printing of valuation plots requires a
graphics-capable printer and the proper settings in PFROI's
printer specifications. As shipped, printer graphics setup
codes are configured for an "Epson" type 9-pin printer, which
is compatible with many other 9 and 24-pin printers. This
setting may be modified, however for other printer types
including "HP Laser "compatible printers.
Valuation plot color may be changed by toggling "Alt+C". This
increments the number following the "C=" at the bottom right
of the valuation graphics display and redisplays the plot
using new colors.
Allocation Graphics
────────────────────────────────────────────────────────────
Graphics portraying portfolio allocation by value may be
displayed by executing the "Alt+G" command from the portfolio
"Position" record display screen.
The pie chart segments are filled by colors on EGA and VGA
displays. Toggling the "Alt+F" keys ("Fill" command) re-
plots without color fill. Executing the "Alt+P" command
initiates printing of the pie chart. If the "Pie" is
"flattened" or "elongated" modify the "aspect ratio" in the
PFROI printer specifications.
34
Performance Computations
────────────────────────────────────────────────────────────
Return on investment is computed on the performance screen.
Select "Performance" from the main PFROI menu to get a
screen appearing as follows:
ROI - DEMOPF ($)
Alt + Roicalc Clear Help
Start End Symb Mask T SIC Twt PF Mask Csh BT ROI % AT ROI %
======== ======== ========= = === === ============ === ======== ========
12/31/83 12/31/89 *ALL***** * * Off DEMOPF * 21.4505 18.9068
Mo/Dy/Yr $ Value Mo/Dy/Yr $ Value Mo/Dy/Yr $ Value Mo/Dy/Yr $ Value
== == == ========= == == == ========= == == == ========= == == == =========
07/03/82 1950 03/31/90 358538
12/31/83 25645 04/30/90 348970
12/31/84 75419
12/31/85 130479
12/31/86 173687
12/31/87 216023
03/31/88 223621
06/30/88 246856
09/30/88 241177
12/31/88 238016
03/31/89 274838
06/30/89 295293
09/30/89 342062
12/31/89 334004
01/31/90 343052
02/28/90 348661
The performance screen has two parts. The bottom portion is a
replication of the valuation screen. This indicates to you for
which dates valuations exist.
The top part of the performance screen provides fields for
input of ROI start and end dates. It additionally provides a
number of "mask" fields which permit you to specify what
securities and portfolios are to be included in an ROI
calculation. A security must "pass" all masks to be included
in the calculation. These fields operate as follows:
Symb Mask - Symbol Mask. Permits ROI computation for a
specific security. When set to "*ALL*****", all securities
are passed, otherwise only the security with a symbol
identical to the symbol mask is passed. DOS wildcard
characters "*" and "?" may be embedded in the symbol mask
(except ""ALL"" mask) to compute ROIs for a family of
securities.
T - Type Mask. Permits ROI computation for a group of
securities of the type specified. When this mask is blank or
contains "*", all types are passed. If this mask is set and a
security is not found in the Master List or the type
specification in the Master List is blank, then the security
does not pass the mask.
35
SIC - SIC Mask. Permits ROI computation by "Standard Industry
Code" as specified for each security in the Master List.
When this mask is blank or contains "*" all types are passed.
If this mask is set and a security is not found in the Master
List or the SIC specification in the master list is blank,
then the security does not pass the mask.
Csh - Currency Symbol Mask. Permits ROI computation by
currency type as specified for each security in the Master
List. When this mask is blank or contains "*", all currency
types are passed. If this mask is set and a security is not
found in the Master List or the currency specification in the
Master List is blank, then the security does not pass the
mask unless the mask is set identical to the base currency
symbol. This mask is active for the CAPTOOL-"Global" version
of CAPTOOL only.
PF Mask - Portfolio mask. Indicates the portfolio to be
included in the ROI computation. The default portfolio is the
currently loaded portfolio. Editing PFmask using DOS
"wildcard" characters "*" and "?" permits computation of a
combined ROI for groups of portfolios within the currently
loaded client file. For example, setting PFmask to "SMITH?.*"
computes ROI for portfolios "SMITH1.WM", "SMITH2.WIL",
"SMITH3.BIL", etc., provided they exist in the client
records. Setting PFmask to "*.*" computes the combined ROI
for all portfolios in the client records. This mask is
active for CAPTOOL only.
Twt - This setting turns PFROI's "Time Weighting" feature
On/Off. When "Time Weighting" is set to "On", PFROI computes
a "time-weighted" ROI in addition to computing the usual
"Internal Rate of Return" ROI for the specified period.
Furthermore, if "Twt=On" and the specified period spans at
least twelve valuations, PFROI will also compute "Dynamic
Beta". The significance of "Time Weighted ROI" and "Dynamic
Beta" are discussed in Appendices C and E. Most users will
want to leave this setting "Off" for a faster ROI computa-
tion.
Try running some ROI calculations. Specify existing valuation
dates as start and end dates. If a non-valuation date is
choosen for the start or end date, an estimated interim value
will be computed, thereby reducing the accuracy of the
resulting ROI. Execute Alt+R to initiate the calculation.
36
Initially try using the first and last valuations. After
entering the end date, execute Alt+R. There will be some
delay while the computer works. When calculations are
complete, the ROI results are displayed as follows:
Joe E. Demo 1234-1139
Portfolio=DEMOPF Symbol=*ALL***** Type=* SIC=* Cash=*
Valuation on 12/31/83 25645.00
Funds Added 113995.98
Interest Earned 17216.84
Dividends Earned 18855.67
Net Other Income 0.00
U & R Capital Gains 158765.54
Funds Removed 0.00
Interest Charged 11.23
Dividends Charged 464.00
Valuation on 12/31/89 334003.80
Est. Taxes Paid/Due 21713.62
ROI Before/After Taxes 21.45% 18.91%
S&P 500 13.53%
DJ 30 13.93%
NASDAQ 8.51%
"P" = print... <ESC> to prev. screen
Note that sources of income are summarized (unrealized and
realized capital gains are combined) and ROI is shown both
before and after taxes. For an ROI of the entire portfolio as
in the example above "Funds Added" signifies deposit trans-
actions, while "Funds Removed "signifies withdrawal transac-
tions, or the equivalent, such as cashing of dividends or
interest payments.
Also note that ROI is also computed for several security
indices. This permits comparison with portfolio performance.
However, since most indices do not include dividends, you will
have to mentally adjust for these if you are to make a
meaningful comparision.
To generate an ROI for an individual security, set the symbol
mask to that security's symbol before selecting ROI dates. It
is again recommended that existing valuation dates be used for
the start and end date. This is the case even if the start
date is prior to the initial purchase of the security or the
end date follows the final sale of the security. In that
situation PFROI will actually initiate the ROI calculation
from the date of first purchase and will terminate it at the
date of final sale.
37
Try running an individual security ROI calculation. The
results will appear as follows:
Joe E. Demo 1234-1139
Portfolio=DEMOPF Symbol=XON Type=* SIC=* Cash=*
Valuation on 12/31/83 7800.00
Funds Added 8645.70
Interest Earned 0.00
Dividends Earned 8480.00
Net Other Income 0.00
U & R Capital Gains 23579.30
Funds Removed 13505.00
Interest Charged 0.00
Dividends Charged 0.00
Valuation on 12/31/89 35000.00
Est. Taxes Paid/Due 3127.60
ROI Before/After Taxes 25.57% 22.84%
S&P 500 13.53%
DJ 30 13.93%
NASDAQ 8.51%
"P" = print... <ESC> to prev. screen
There are several differences between an ROI for an individual
security such as the above and the ROI for an entire portfolio
as shown on the prior page. In particular for an individual
security "Funds Added" signifies buying into the security,
while "Funds Removed" signifies selling out of the security,
or cashing of dividends or interest. In the case of dividends
or interest, their receipt comprises "removal" of funds
because such payments represent cash flow out of the
particular investment and thus are effectively a disinvestment
in the security. That this is in fact the case can be seen by
observing that the price of a stock typically drops on the day
that the shares become "ex-dividend".
For both the portfolio ROI and the individual security ROI the
category "U & R Capital Gains" represents the combined
unrealized and realized capital gains over the ROI period.
"Realized Capital Gains" are that portion of gain in a
security that was achieved and liquidated during the ROI
period. "Unrealized Capital Gains" are that portion of gain
that was achieved during the ROI period but not liquidated.
You should not try to compare these with the unrealized
appreciation shown on the position reports and realized gains
shown on the capital gains report. These latter gains are
gains from the time of purchase and thus usually do not
encompass the same time period as the ROI.
38
Reports
────────────────────────────────────────────────────────────
Select "Reports" from the main PFROI menu to obtain the
"Reports" menu as follows:
╔═════════════════════════════ Reports - DEMOPF ═════════════════════════════╗
║ ║
║ ║
║ A) Position Change I) Other Income Summ. ║
║ B) Transactions 1 J) Capital Gains ║
║ C) Transactions 2 K) Cash Flow Forecast ║
║ D) Portfolio Posit. 1 L) Portfolio ROI ║
║ E) Portfolio Posit. 2 M) ROI's by Security ║
║ F) Open Lots Detail N) Valuation Plot ║
║ G) Dividend Summary O) Allocation Plot ║
║ H) Interest Summary P) Client Statement ║
║ ║
║ ║
╠═════════════════════════════ Alt + File Help ══════════════════════════════╣
║ ║
║ > ║
║ ║
╚════════════════════════════════════════════════════════════════════════════╝
<ESC> to prev. screen
Report Output
Report text may be output to printer, screen or to disk file.
For printer output, select "LPT1" (or LPT2 or LPT3 if
supported on your PC). The device "PRN" is assumed to be the
same as "LPT1" with respect to output device configurations.
Screen output may be obtained by using the special PFROI
output device named "SCRN". If you use "SCRN", the report is
sent to a temporary disk file and is also displayed on the
screen. The arrow and page keys may be used to scroll through
the report both horizontally and vertically. The report may
then be sent to the printer with the "Alt+P" command.
If any other non-DOS device name is specified for the "Output
Device", output is sent to a disk file text created using the
specified name.
Report Setups
Upon making a selection from the report menu you will be
prompted for setup information. Some reports require that a
valuation exist on the "Base " "Date" and/or "Close Date".
Default dates are those for the most recent two valuations.
These dates however may be overridden by entering other
values.
39
"IF VALUATIONS ARE NOT FOUND FOR SPECIFIED DATES, REPORTS
WILL NOT PRINT". Income reports require a fiscal year-
ending date, with the default setting derived from the
portfolio configuration records (see auxiliary records).
Report Contents
The content of specific reports are as follows. Try these
reports using the "SCRN" output so as to save printer paper:
Position Change - Gives opening and closing values of cash
and security position balances in a portfolio. This report
is intended primarily for use as the opening report on a
client statement.
Transactions - Reports opening and closing cash balances
and intervening transactions for the specified period.
Three customizable versions of this report are available.
Portfolio Position - Reports portfolio position on the
specified valuation date in formats similar to the
"Position Screen". Four customizable versions of this
report are available.
Open Lots - Reports the position, cost base and value of open
positions in all securities held in the portfolio. Lots
consisting of a series of FIFO purchases as might be the case
for dividend and capital gains reinvestments are reported
with each purchase shown separately (unless a "*" is inserted
in the Open Lot Report Spec. (see "Report Customization"
below) in which case lot purchase detail is suppressed).
Dividend Report - Reports dividends received (long) or paid
(short) during the specified fiscal period. Dividends with a
manually entered estimated tax of zero (tax free) are
reported separately in a "tax-free" category for information.
Interest Report - Reports interest received (long) or paid
(short) during the specified fiscal period. Includes
phantom interest ("PIN "transaction code). Interest with a
manually input estimated tax of zero (tax free) are
reported separately for information.
Other Income - Reports distribution and rent income ("DST"
and "RNT" transaction codes) received during the specified
fiscal period.
Capital Gains - Reports taxable capital gains and capital
gains distributions occurring in the specified fiscal period.
Gains are computed according to the type of tax lot assign-
ment (specific, FIFO or average cost) and are separated into
short and long term categories according to the holding
requirments specified in the tax rate records (see "Auxiliary
Records").
40
Cash Flow Forecast - Reports a month by month forecast of
portfolio cash income expected due to dividends, interest and
bond maturities based upon current portfolio holdings. To
have a non-zero forecast in this report, a security must
contain a record in the Master List containing a dividend,
interest, and/or bond maturity payment date/"per share" rate
entry in the auxiliary description field.
Portfolio ROI - Computes and reports the portfolio return on
investment for the specified period, plus for the previous
year and for the previous five years or since the inception
of the portfolio, whichever period is shorter.
ROI's by Security - Computes and reports ROI for each
security held in the portfolio on the specified close date
for the period specified.
Valuation Plot - Plots the valuation graphics described
previously. Output may NOT be sent to "CON", "SCRN" or a
disk file.
Allocation Plot - Plots the allocation "Pie Chart" graphics
which may be generated from the position record screen
described previously. Output may NOT be sent to "CON", "SCRN"
or disk file.
Client Statement - Generates a "client statement" for the
specified period, comprised of the reports specified in the
"Client Report" "Spec" setting on the portfolio configuration
record (see "Auxiliary Records"). (CAPTOOL only).
41
Report Customization
Many of the PFROI reports may be customized by re-ordering,
omitting or adding fields. For those reports that may be
customized, you may access a customization menu by depressing
the control key "Ctrl" in combination with the selection key
for the applicable report. For example "Ctrl+D" brings up the
following customization screen for "Account Position Report
#1":
╔═════════════════ Account Position 1 Report Customization ═════════════════╗
║ ║
║ A) T P) Accrued ║
║ B) Symbol Q) Beta ║
║ C) Description ║
║ D) Quantity ║
║ E) *** Cost ║
║ F) Mkt Price ║
║ G) *** Value ║
║ H) Val % ║
║ I) ***/Yr ║
║ J) Yld % ║
║ K) Gains ║
║ L) Gain% ║
║ M) Cost/U ║
║ N) Quote Prc ║
║ O) Xchg R ║
║ ║
║ ║
╠════════════════════════════ Alt + saVe Help ═════════════════════════════╣
║ ║
║ Cur Spec: ABCDEFGHIJKLQ New Spec: ║
║ ║
╚════════════════════════════════════════════════════════════════════════════╝
This screen displays the available fields for this report.
"Cur. Spec." lists the fields currently active in this report
and the order in which they occur. You may revise this by
making an entry in the entry field labelled "New Spec".
If the sum of the field widths you specify exceed the "Cols"
setting in the "Printer Specification" for the selected output
device, then the report will be truncated to the last field
which fits entirely within the specified width. "SCRN" width
is the same as specified for disk file output.
42
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